An Introducing Broker (IB) is a partner that refers traders to a broker, in exchange for commission paid by the broker. It is a long-established structure in forex and CFDs — not unique to ShaFX.
What an IB does
- Refers traders to the broker through a tracked link or unique IB code.
- Sometimes provides additional services: education, calculators, dashboards, support.
- Receives commission from the broker on the volume traded by referred clients.
What an IB does NOT do
- Does not custody client funds. Money goes directly to the broker.
- Does not execute trades. Trades are executed by the broker.
- Does not control account terms. The broker sets spreads, leverage, and policies.
- Does not give financial advice (and shouldn't — that requires separate licensing).
How IBs are paid
Per-lot rebates, revenue share, one-time bounties, or hybrids. The exact structure depends on the IB's contract with the broker.
Why ShaFX shares the majority back
Most of the commission is returned to the trader as cashback. The remaining margin funds platform infrastructure, the research desk, and the rewards program. Full revenue model: /how-shafx-makes-money.
Next steps on ShaFX
- Free trading calculators — position size, pip value, margin, risk/reward, drawdown.
- Take a quiz on this topic and see what you missed.
- Glossary — precise definitions for every term used here.
- Compare brokers using our methodology.
Educational only. This article is general information for trader education. It is not financial advice, tax advice, legal advice, or a recommendation to trade. Trading CFDs and forex is high-risk and most retail investor accounts lose money. Read the Risk Disclosure.